Exhibit 12.2
CubeSmart L.P.
Computation of Ratio of Earnings to Fixed Charges
(dollars in thousands)
|
| Year Ended December 31, |
| Three Months Ended March 31, |
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|
| 2008 |
| 2009 |
| 2010 |
| 2011 |
| 2012 |
| 2012 |
| 2013 |
|
Earnings before fixed charges: |
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Add: |
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Loss from continuing operations |
| $ (31,166) |
| $ (23,938) |
| $ (15,000) |
| $ (8,614) |
| $ (8,296) |
| $ (4,323) |
| $ (840) |
|
Fixed charges - per below |
| 54,192 |
| 47,831 |
| 44,539 |
| 46,626 |
| 44,329 |
| 10,159 |
| 10,976 |
|
Less: |
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Capitalized interest |
| (99) |
| (73) |
| (132) |
| (82) |
| (185) |
| (29) |
| (95) |
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Earnings before fixed charges |
| 22,927 |
| 23,820 |
| 29,407 |
| 37,930 |
| 35,848 |
| 5,807 |
| 10,041 |
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Fixed charges: |
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Interest expense (including amortization premiums and discounts related to indebtedness) |
| 53,943 |
| 47,608 |
| 44,257 |
| 46,394 |
| 43,994 |
| 10,092 |
| 10,843 |
|
Capitalized interest |
| 99 |
| 73 |
| 132 |
| 82 |
| 185 |
| 29 |
| 95 |
|
Estimate of interest within rental expense |
| 150 |
| 150 |
| 150 |
| 150 |
| 150 |
| 38 |
| 38 |
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Total Fixed Charges |
| 54,192 |
| 47,831 |
| 44,539 |
| 46,626 |
| 44,329 |
| 10,159 |
| 10,976 |
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Income allocated to preferred shareholders |
| - |
| - |
| - |
| 1,218 |
| 6,008 |
| 1,502 |
| 1,502 |
|
Total combined fixed charges and preferred distributions |
| 54,192 |
| 47,831 |
| 44,539 |
| 47,844 |
| 50,337 |
| 11,661 |
| 12,478 |
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Ratio of earnings to fixed charges (a) |
| 0.42 |
| 0.50 |
| 0.66 |
| 0.79 |
| 0.71 |
| 0.50 |
| 0.80 |
|
(a) Due to our losses in fiscal 2008, 2009, 2010, 2011 and 2012 and in the three months ended March 31, 2012 and 2013, the coverage ratio was less than 1:1. The Company must generate additional earnings of $31.3 million, $24.0 million, $15.1 million, $9.9 million and $14.5 million in fiscal 2008, 2009, 2010, 2011 and 2012, and $5.9 million and $2.4 million in the three months ended March 31, 2012 and 2013, respectively, to achieve a fixed charge coverage ratio of 1:1.